Fannie Mae Aqm List

[Mr Rex]

Eli, help me out. More government=good? or more government=bad? I can't tell with your obsession with the oligo-words which it is. Please give me a starting point.

 

[Eli]

Eli, help me out. More government=good? or more government=bad? I can't tell with your obsession with the oligo-words which it is. Please give me a starting point.

It's good considering all the market forces at play on price. I am looking at the big picture. I loved it when I set my price with a person one on one because that was more of a free market. Prices were easily adjusted based on complexity.

Now, govt is the equalizing force due to market structure changing to the oligopsony. AMC's are already seeing the power of state govt even if fed govt don't care about the public. Just wait. Louisiana ain't done yet,

Wait til states start taxing AMC's on their cut. It's coming.

 

[Terrel L. Shields]

It is obvious, I hope most forumites understand, that the AMC has been tasked with whipping us all in line and some of us had options to do something else while remaining appraisers. Others had no option but to knuckle under or do something else. So DeeDee is installing GPS in trucks, Jeff Horton is making traditional kayaks... etc. If you don't recognize those names, some of us do. Bucks was absent for years from the forum..obviously doing something else.

Now as our numbers diminished, and some remaining, like myself quit secondary market, the whip hand has suddenly changed. Appraisers are refusing $250 fees. They are refusing 2 day TAT. Pay to play. And screams are coming from the peanut gallery complaining that we appraiser are gouging "borrowers"??? What about all those AMC fees being paid back years ago. How many appraisers lost their licenses over a $200 URAR report? One would be too many. There is a risk to being in this business and appraisers stupidly fell for that "volume" crap 10 years ago. AMCs were all too happy to maintain appraisal fees to the borrower, but now that we are cutting into THEIR precious and undeserved cut of the pie, suddenly we are profiteers and robbers??? The banks hold the key. Not Louisiana. Not Virginia. Banks can eliminate the problem tomorrow. Go back to your own appraisal department ordering reports, learn and know your vendors (us) and send the AMCs packing. And while you are at it, stop charging borrowers over and above the appraisers fee for doing them the favor of an appraisal they don't want but which the bank is required to get.

goo·ber ˈɡo͞obər/
noun
North American informal noun: goober pea; plural noun: goober peas; noun: goober; plural noun: goobers

1. 1. a peanut that contains a oligopsony monster

 

[TRESinc]

It's good considering all the market forces at play on price. I am looking at the big picture. I loved it when I set my price with a person one on one because that was more of a free market. Prices were easily adjusted based on complexity.

Now, govt is the equalizing force due to market structure changing to the oligopsony. AMC's are already seeing the power of state govt even if fed govt don't care about the public. Just wait. Louisiana ain't done yet,

so on one hand you say you loved when you set your pricing because it was a free market but you constantly preach about government setting standard C&R fees and how good that will be, like in VA or LA. you can't have your cake and eat it too.

 

[Elliott]

Let's see, if AMC's wipe out appraisers, that's 80,000 x $100,000 = $8 billion more profit in the AMCs pockets. They could all give their executives bonuses. They just need some wording changes in USPAP that would allow AVMs.

 

[Eli]

so on one hand you say you loved when you set your pricing because it was a free market but you constantly preach about government setting standard C&R fees and how good that will be, like in VA or LA. you can't have your cake and eat it too.

Because I know an oligopsony has market power on price. An oligopsony is not a free market structure. State government is fixin to show you they hold just as much market power on price as an oligopsony or supply and demand from a market force standpoint.

 

[DWiley]

Because I know an oligopsony has market power on price. An oligopsony is not a free market structure. State government is fixin to show you they hold just as much market power on price as an oligopsony or supply and demand from a market force standpoint.

If the situation is as you state, then why have fees risen so dramatically in Portland, Seattle, and Denver? If the AMCs have such big market power, why would they "allow" such fee increase? Sorry, the real world data just does not support you position (and neither does the dictionary or econ textbooks )

 

[J Grant]

If the situation is as you state, then why have fees risen so dramatically in Portland, Seattle, and Denver? If the AMCs have such big market power, why would they "allow" such fee increase? Sorry, the real world data just does not support you position (and neither does the dictionary or econ textbooks )

Which shows in a handful of places in this enormous country, for this short term busy cycle, AMC's are so desperate to get the work done they'll assign at higher fees. The same few locations keep getting recycled in these conversations since they seem to be the only places fees have dramatically increased. Will those fees last when the busy low interest rate cycle ends might be of interest.

AMC's are not the actual problem, the problem is a system that created the AMC which has a built in conflict of interest when selecting appraisers to give the work to, since the AMC's profit is tied to lowering the portion of the fee that reaches the appraiser.

 

[Eli]

If the situation is as you state, then why have fees risen so dramatically in Portland, Seattle, and Denver? If the AMCs have such big market power, why would they "allow" such fee increase? Sorry, the real world data just does not support you position (and neither does the dictionary or econ textbooks )

You simply don't understand ALL the market forces at play. You will soon I am confident. Keep going with that narrow mindedness of all market forces.

You will be like a hot potato to some market forces. Have you called Louisiana yet to tell them what you are going to pay in their market? Call the FTC and conference do it.

 

[DWiley]

Which shows in a handful of places in this enormous country, for this short term busy cycle, AMC's are so desperate to get the work done they'll assign at higher fees. The same few locations keep getting recycled in these conversations since they seem to be the only places fees have dramatically increased. Will those fees last when the busy low interest rate cycle ends might be of interest.

Those areas get mentioned because they are the most severe, but fees have gone up in many places, not just those three. Will those fees last? That is 100% dependent on the supply of appraisers in those markets.

If there was a true oligopsony, then we would not have seen the fee increases that have happened in many markets in the past six months. Don't take my word for it - just check out the thread on fees to see if there is some big market power that is controlling fees What you will see is many appraisers posting that their fees are higher now than they were this time last year, which totally blows big E's argument out of the water.